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Simple Interest

Total questions: 12

Worksheet time: 26mins

Name
Class
Date
1.
The simple interest formula is I=Prt.  What does the t represent?
a)
Principle
b)
Interest
c)
Time, in hours
d)
Time, in years
2.
Write the percent as a decimal. 
4.3%
a)
4.3
b)
.43
c)
.043
d)
4300
3.
The rate is given as a percent (%).  Before using it in the simple interest formula, you must first convert it to a______.
a)
fraction
b)
decimal
c)
ratio
d)
dollar amount
4.
True of False:  Before you can calculate INTEREST your time must be in MONTHS!
a)
FALSE
b)
TRUE
5.
9 months is how many years? Remember there are 12 months in a year. 
9/12 = x/100
Cross multiply and divide 
a)
.5
b)
.75
c)
.25
6.
Ann puts $300 in a bank account earning 4% interest.  How much will she earn in interest in 1 year?
a)
4
b)
8
c)
12
d)
16
7.

Rachel invested $2,700 in a savings account earning 7% simple interest. If she invests for 2 years, how much money will she have in total?

a)

$3,078

b)

$378

c)

$40,500

d)

$4536

8.
Dan borrowed $2,000 for 6 months at 12% annual simple interest rate. How much interest is that? Remember your time has to be in YEARS!!  6 months is half of a year or .5
a)
$120
b)
$144
c)
$1,200
d)
$1,440
9.

How much simple interest would be earned on a savings account of $4,500 at 5.5% interest per year after 24 months?

a)

$594,000

b)

$495

c)

$49,500

d)

$5,940

10.
John put 14,000 Euros in an account at a simple interest rate of 1% per year.  How much interest will he get after 12 years?
a)
16,800 Euros
b)
168,000 Euros
c)
1,680 Euros
11.
The simple interest formula is I=Prt.  The P represents the principle.  The principle is ___________________.  
a)
the amount of money borrowed or deposited
b)
the percent interest for his year
c)
the amount taxed
d)
the amount the bank owes you for being a customer at their bank
12.
Julie borrowed $3,500 for 3 years at 7½% simple interest rate. 
How much interest is that?
a)
Julie borrowed $3,500 for 3 years at 7½% simple interest rate. 
How much interest is that?
b)
$787.50
c)
$810
d)
$812.50